oneworld

Qatar Airways could cancel a US$6.4b order with the Airbus if issues with the plane maker’s A320neo are not resolved by the summer. The airline was supposed to be the launch carrier for Airbus’ new A320 model but refused to take delivery in December over engine cooling issues. It is now deciding whether it should scrap the order for 80 A320neos and opt for just as many Boeing 737 aircraft. “Look, at the end of the day we will be prepared to walk away at any cost because that cost is lower than what the airline is today facing,” Qatar Airways CE Akbar Al Baker said Tuesday. A decision on whether to cancel the order and to take the 737s instead will be made by the summer, he said. Asked if Qatar Airways could order 80 737s instead, he said “potentially, yes.” <br/>

Sri Lanka's prime minister has instructed debt-ridden SriLankan Airlines to cancel 4 of 8 Airbus A350 aircraft orders, and seek revival via a new international partner. He said the govt is determining whether there will be any cost of cancellation, and that SriLankan will continue to buy the other 4 aircraft which Airbus has started building. SriLankan Airlines was a profitable 10-year joint venture with Emirates until the pair split in 2008. Mismanagement in the years since has left it with a debt of around US$3.25b, the prime minister said. "If it continues as it is, SriLankan will collapse which will have an adverse impact on the economy and tourism," he said. "We cannot allow that to happen. We have decided to seek a new partner." The airline has bought 7 Airbus A330-300s since 2012 to replace its fleet, before ordering the 8 A350s. <br/>